Financial Markets: Increasing Complexity, Maintaining Stability

3–5 July 2019, ST. PETERSBURG


Programme


3 July

08:00–18:00

North-Western Main Branch of the Central Bank of the Russian Federation, 68, 70-72-74, Nab. Reki Fontanki
Bank of Russia Economic Research Conference: ‘Macroprudential Policy Effectiveness: Theory and Practice’ Closed event. Decisions on participation will be made on an individual basis. Expression of interests in participation, indicating the name of the ...
Closed event. Decisions on participation will be made on an individual basis. Expression of interests in participation, indicating the name of the individual and the organization, should be emailed to Alexey Sinitsyn at: SinitsynAS01@cbr.ru

20:00–23:00

Aleksandrinsky Theatre (6, Ostrovskogo Square, St. Petersburg), Main Stage
Russian Hamlet (Eifman Ballet)
4 July

08:30–09:30

Registration

09:30–10:00

Presidential Library,
Plenary session hall (second floor)
Opening event Address by Elvira Nabiullina, Governor of the Bank of Russia

10:00–11:30

Presidential Library,
Plenary session hall (second floor)
Plenary session I Plenary sessions Central bank’s policy design: pursuing multiple objectives in times of increasing markets complexity and risks variety In an era of high volatility in global markets, central banks in emerging markets need to pursue policies combining measures of monetary and financ...
In an era of high volatility in global markets, central banks in emerging markets need to pursue policies combining measures of monetary and financial stability. What are the features of such a policy? What does the perfect set of instruments look like? How may a policy be pursued in conditions where one instrument serves several goals, and where in order to achieve one goal, you need several instruments?
Moderator
Stephanie Flanders, Senior Executive Editor for Economics, Bloomberg News

11:30–11:50

Coffee break

11:50–13:00

Parallel sessions Banks Session 1.1: New Approaches to Finance for Housing Construction: Challenges and Opportunities for the Banking and Construction Sectors The reform of housing finance: social significance and a growth area for businesses.The task of all participants in the reform is balancing risk mi...
The reform of housing finance: social significance and a growth area for businesses.
The task of all participants in the reform is balancing risk minimization and ensuring the continued growth of the housing market.
New regulatory approaches: evaluation of project performance.
Equity housing construction is a market for the growth of the banking business and the ‘cluster’ business model. The preparedness of the banking system for new principles of financing: the adequacy of resources for replacing the funds of participants in equity construction with bank lending; the creation of new credit products and the development of new competencies in working with developers, control of expenditures and expertise in construction projects.
The construction business: pros and cons of the transition to a new financing system. Ways to overcome the problems of the ‘transition period’.
Moderator
Olga Polyakova, Deputy Governor, Bank of Russia

11:50–13:00

Macroeconomics and Monetary Policy Session 2.1: Features of Policies Implemented by Central Banks in Emerging Markets in an Era of Heightened Global Uncertainty Countries with emerging markets are between the Scylla of the normalization of the Federal Reserve System policy and the Charybdis of slowing down ...
Countries with emerging markets are between the Scylla of the normalization of the Federal Reserve System policy and the Charybdis of slowing down the global economy, reinforced by trade disputes and geopolitics. What should be the optimal policy of the central banks of these countries? How much flexibility is there in decision-making? What instruments can complement the traditional arsenal of monetary policy measures?

11:50–13:00

Finance Market Professionals Session 3.1: New Requirements for Financial Market Specialists On 1 July 2019, in accordance with Federal Law No. 238-FZ of 3 July 2016, ‘On Independent Qualification Assessment’, qualification assessment proce...
On 1 July 2019, in accordance with Federal Law No. 238-FZ of 3 July 2016, ‘On Independent Qualification Assessment’, qualification assessment procedures that are not provided for by this law are no longer applied. For the financial market, this means there is a need to revise the qualification requirements for financial market specialists, since the method of confirming qualifications, such as passing a financial market specialist qualification exam in order to obtain the appropriate qualification certificate, will no longer be in use. With this in mind, proposals will be discussed, as part of a round table, for qualification requirements in the context of the group of persons to whom the requirements apply, and the details of qualification requirements (level of education, speciality, and area of training).
In addition, with the growth of the use of software and hardware in the activities of professional participants in the securities market and the global trend of robotization, it is advisable to discuss regulatory adjustment issues for those cases in which the function of a financial market specialist is performed not by an employee, but by a programme.
Moderator
Konstantin Korischenko, Chairman of the Commission for Professional Qualifications in Risk Management and Financial Services, Council for Professional Qualifications in the Financial Market; Chairman of the Supervisory Board, Guild of Financial Analysts and Risk Managers

11:50–13:00

Collective Investments: Main Challenges and Ares of Growth Session 4.1: The Investment Fund Market: A Reset During the session, the current state and main focus of development of the retail mutual investment funds market, new services and products, and di...
During the session, the current state and main focus of development of the retail mutual investment funds market, new services and products, and digital distribution of investment shares will be reviewed.
Specifically, investors’ requests for retail funds will be discussed, as well as competition between passive and active mutual fund portfolio management strategies.
There will be a particular focus on exchange-traded funds as a kind of Russian counterpart to ETF.
Moderator
Vladimir Potapov, Chief Executive Officer, VTB Capital Investment Management; Head of the Brokerage Department, Senior Vice President, VTB Bank

11:50–13:00

Microfinance Session 5.1: Credit Cooperation: Pathways towards Earning Trust and Raising Popularity Credit cooperation, which enjoyed a revival in Russia in the difficult 1990s, was seen as an instrument to provide citizens of the country with aff...
Credit cooperation, which enjoyed a revival in Russia in the difficult 1990s, was seen as an instrument to provide citizens of the country with affordable, transparent financial services. The form of credit cooperatives was not used accidentally; all over the world, cooperatives (credit unions) were seen as ‘quiet financing’ or ‘household money’. How much does domestic credit cooperation today match this view? During the discussion, participants will discuss the measures required for consumer credit cooperatives to become credible, popular and viable institutions, and effective ones, including in terms of fulfilling social tasks.
Representatives of domestic industry will talk about plans for the future: they will announce the main provisions of the Strategy for the Development of Credit Cooperation, which the professional community plans to adopt in June 2019. A foreign expert will express his or her view on the issues discussed at the session.
Moderator
Galina Sharybkina, Advisor to the Director, Microfinance Market Department, Bank of Russia

11:50–13:00

Insurance Market Session 6.1: A Development Strategy for the Insurance Sector: Perspectives from the Market and the Regulator Effective insurance market development, with a simultaneous increase in the competitiveness of insurance services and a significant increase in the...
Effective insurance market development, with a simultaneous increase in the competitiveness of insurance services and a significant increase in the quality thereof, and a strengthening of the financial stability of market participants, is only possible with the development of a united approach to market formation conditions, with an understanding of regulators’ demands for the market, and the market’s demands for the regulator.
The session will cover the current conditions of the insurance market (challenges and prospects, the effects of external factors); the objectives and principles of the Bank of Russia with respect to the development of the financial market as a whole and the insurance market as an important and the most socially significant part of the financial market; the market’s view of the strategic goals of the insurance industry; the initial results of the Strategy for the Development of the Insurance Industry of the Russian Federation for the period of 2019–2021; the role of self-regulatory organizations in the development and qualitative improvement of the insurance service market; the implementation of innovative technologies in the insurance market in the interest of transforming the market landscape; and stimuli for the development of voluntary forms of insurance, including expectations regarding the growth of residential insurance and new regulatory conditions.
Moderator
Nikolay Galushin, President, Russian National Reinsurance Company (RNRC)

11:50–13:00

Cross-sector sessions Session 7.1: Funding Entrepreneurship – A National Priority In this session, the mechanisms for the development of funding SMEs will be discussed. Representatives of the Ministry of Economic Development of t...
In this session, the mechanisms for the development of funding SMEs will be discussed. Representatives of the Ministry of Economic Development of the Russian Federation, development institutions, and the Moscow Exchange are invited to take part in the discussion, which will cover the interconnection between all the financial tools that contribute to the growth of SME funding. In particular, the National Project ‘Small and Medium-Sized Businesses and Support for Individual Entrepreneurship’, and the Bank of Russia’s Roadmap for the development of funding small and medium-sized businesses will be reviewed. Special attention will be paid to the interconnection between all activities that could lead to an increase in the financing of SMEs.
Moderator
Mikhail Mamuta, Head, Service for Consumer Protection and Financial Inclusion, Bank of Russia

13:00–14:30

Lunch

14:30–15:40

Parallel sessions Banks Session 1.2: Infrastructure Projects for the Financial Market: Initial Results and Prospects A range of infrastructure projects for the financial market are currently being implemented in partnership with stakeholders. These include a remot...
A range of infrastructure projects for the financial market are currently being implemented in partnership with stakeholders. These include a remote biometric identification platform, a quick payment system, a digital profile, and the Marketplace and Masterchain platforms.
These projects are at various stages of development, ranging from pilot versions to fully commercial products. However, they are all destined to affect banks’ business models, as well as the financial market as a whole. This session will examine the results following the launch of these projects and the next steps in their development. Participants will also have the opportunity to put forward their questions.
Moderator
Olga Skorobogatova, First Deputy Governor, Bank of Russia

14:30–15:40

Macroeconomics and Monetary Policy Session 2.2: Interaction between Monetary Policy and Macroprudential Policy In the wake of the global financial crisis, financial regulators collectively agreed that efforts to reduce systemic risks (macroprudential policy)...
In the wake of the global financial crisis, financial regulators collectively agreed that efforts to reduce systemic risks (macroprudential policy) are no less important than monetary policy. It became clear that price stability alone was not enough to keep the financial system in balance. A new type of regulation, aimed at supporting financial stability, was needed. It is impossible to conduct either of these policies without taking the other into account, because their respective goals may sometimes contradict each other. The issue, then, is finding the optimal balance of monetary and macroprudential measures.
During the session, participants will discuss the following issues:
What does a macroprudential policy look like, what instruments are used to conduct one, and why was this type of policy not more widely discussed before the financial crisis? How does macroprudential policy, meant to ensure financial stability, relate to the goals of monetary policy, which is meant to support price stability? Which of these has priority if they should contradict each other? Should macroprudential policy lean against the wind and what instruments does it have at its disposal to do so? How does the interaction between monetary and macroprudential policies differ in emerging markets?
Moderator
Ksenia Yudaeva, First Deputy Governor, Bank of Russia

14:30–15:40

Finance Market Professionals Session 3.2: Competition for Retail Investors: Brokers and Trustees In a rapidly changing financial market, when interest rates on bank deposits become less attractive compared to the investment profit offered by pr...
In a rapidly changing financial market, when interest rates on bank deposits become less attractive compared to the investment profit offered by professional participants, the retail investor’s attention increasingly turns to the securities market. In these conditions, the battle over clients between financial intermediaries such as brokers and trustees escalates.
This session will cover topical issues related to the development of the financial market, with regard to the advantages and risks of various models; serving the interests of investors when offering them investment products; and the use of unfair competitive advantages.
For example, brokers’ statutory right to use their clients’ monetary assets in their own interest allows for the reduction of service fees, making brokerage more attractive to clients. What is more, this model is accompanied by increased risks for investors. Moreover, one of the barriers to the development of brokerage aimed at a wider audience is the population’s relatively low financial literacy.
In this situation, the presence of highly qualified trustees, whose experience and skills allow them to determine the optimal investment strategy in accordance with the consumer’s risk appetite, is an attractive factor. However, trustees’ activities are accompanied by significant risks: trustees do not guarantee that anticipated profit levels will be reached and cannot be held responsible if assets are lost in the pursuit of a particular strategy. Moreover, an additional barrier to the development of asset management in the retail sector is the low profitability of relatively small client portfolios, which forces trustees to set higher entry thresholds for retail investors.
Moderator
Catherine Golub, Project Coordinator, Forum Analytical Centre

14:30–15:40

Collective Investments: Main Challenges and Ares of Growth Session 4.2: Private Pension Funds: Broadening Investment Opportunities vs Managing Risk – Earn or Save? This session will touch on the main areas of development in investment processes for private pension funds. The discussion will consider the new le...
This session will touch on the main areas of development in investment processes for private pension funds.
The discussion will consider the new legal requirements for financial instruments in private pension fund portfolios, including new types of assets, ratings, and exchange transactions.
Particular attention will be paid to long-term investments, currency instruments, and foreign securities.
Leading market experts will also share their opinions about the effects that stress testing, fiduciary responsibility, and requirements for a return on pension funds have on funds’ investment policies.
Moderator
Sergey Belyakov, President, Association of Non-State Pension Funds

14:30–15:40

Microfinance Session 5.2: The Socialization of Microfinance Organizations: Transforming Business Models through Regulatory Action Legislative changes that have come into effect since January 2019 have had an impact on the microfinance market as a whole and on the work of its i...
Legislative changes that have come into effect since January 2019 have had an impact on the microfinance market as a whole and on the work of its individual participants. Tightening the previously existing limit on payments for short-term consumer loans and introducing the limit on the daily interest rate have forced the majority of microfinance institutions to change their business models in order to maintain their market presence.
Representatives of the professional community will tell their colleagues about their business restructuring strategies and new opportunities for development.
A foreign speaker will present his or her view on possible ways to boost microfinance based on international experience. The audience will also learn about the position of human rights advocates on the issues under consideration. In addition, participants will also discuss prospects for introducing the debt burden indicator into the regulation. The indicator is designed to reduce the burden on borrowers and prevent a possible increase in the household debt load.
Moderator
Vladimir Chistyukhin, Deputy Governor, Bank of Russia

14:30–15:40

Insurance Market Session 6.2: Third-Party Vehicle Liability Cover: A Focus on Customization Third-party vehicle liability coverage is a key Russian insurance sector which has, in the last few years, been very responsive to its participants...
Third-party vehicle liability coverage is a key Russian insurance sector which has, in the last few years, been very responsive to its participants. The discussion will cover the new, balanced model for third-party vehicle liability coverage, in which the consumer is offered accessible and high quality services, the price of which is affected by their driving behaviour, and the insurer is economically interested in providing such services.
The session will consider the initial results of the third-party vehicle liability coverage reforms; the primary tendencies of the development of third-party vehicle liability coverage from 2017 to 2019, taking the regional factor into consideration; the individualization feature of third-party vehicle liability coverage insurance products; third-party vehicle liability coverage digitization (new opportunities for participant relations); and the role of insurance intermediaries in the reform of third-party vehicle liability coverage.
Moderator
Victor Klimov, Financial Ombudsman in Insurance

14:30–15:40

Cross-sector sessions Session 7.2: Digital Transformation and Cyber Risks in the Financial Sector The development of digital technology, the emergence of new solutions and services, and the digitalization of business processes can all help signi...
The development of digital technology, the emergence of new solutions and services, and the digitalization of business processes can all help significantly improve customer experience, while reducing costs for companies. Regulators play a crucial role in digital transformation through creating a legislative environment that supports the implementation of innovations, and participating in infrastructure projects for the financial market.
At the same time, however, the spread of digitalization across the entire economy brings with it increased risks in relation to IT security. Appropriate IT and cyber security measures critical for any tech solution to be successful.
Moderator
Olga Skorobogatova, First Deputy Governor, Bank of Russia

15:40–16:00

Coffee break

16:00–17:10

Parallel sessions Banks Session 1.3: Business Models for Regional Banks: The Past, Present, and Future In the past, it used to be that regional banks had an advantage over credit organizations on a federal level because of their flexibility, individu...
In the past, it used to be that regional banks had an advantage over credit organizations on a federal level because of their flexibility, individualized approach, and the speed with which they made decisions about extending credit. In recent years, the situation has shifted in favour of the latter, in part as a result of significant investments that regional banks simply cannot make. Consequently, regional banks have been forced to shift their focus to operations in the interbank lending market and with the Bank of Russia. In response, the Bank of Russia has enacted proportional regulations, created the Marketplace platform, and helped improve the deposit insurance system by extending it to include SME assets. Is this enough to activate the growth of regional banks?
Moderator
Anatoly Aksakov, Chairman, Committee on Financial Markets of the State Duma of the Federal Assembly of the Russian Federation

16:00–17:10

Macroeconomics and Monetary Policy Session 2.3: Communication Policy as a Monetary Policy Tool Just three decades ago, the most popular practice of central banks was limiting information about decision-making as much as possible. With the dev...
Just three decades ago, the most popular practice of central banks was limiting information about decision-making as much as possible. With the development of inflation targeting, which depends on a public commitment to achieving inflation goals and centres on anchoring inflation expectations, the situation has changed. A policy of active communication has gradually become an integral part of the work of any modern central bank.
International communication practices with respect to inflation targeting and the current experiences of various countries indicate that a number of unanswered questions remain in this area.
One of the most frequently discussed questions is the future of announcements regarding monetary policy plans, as the monetary policy plans of developed countries and global financial conditions normalize. Another important issue is determining the optimal level of transparency and the practicality of publishing rate forecasts. Meanwhile, emerging markets are faced with their own set of challenges.
These and other questions will be discussed at the session by representatives of international organizations and national central banks with many years of experience successfully conducting communication policies.
Moderator
Stephanie Flanders, Senior Executive Editor for Economics, Bloomberg News

16:00–17:10

Finance Market Professionals Session 3.3: The Derivatives Market: On the Threshold of Change? During this session, participants will discuss existing regulation, current financial market participants’ (including corporate and institutional i...
During this session, participants will discuss existing regulation, current financial market participants’ (including corporate and institutional investors) demands, and actions that need to be taken for the further development of the derivatives market.
Currently, spot trading holds the largest share of the commodity market. The development of a derivatives market is the logical transition from a spot market to an investment market where derivatives move in correspondence to underlying assets, a crucial part of the use of hedging to manage financial risks. Currently, commodity derivatives are tied for the most part to foreign benchmarks, which do not always fairly reflect the cost of Russian commodities.
Taking this into account, Russian exchanges’ plans to develop derivative trading based on commodities (oil, petroleum products, agricultural products, etc.) meant for both domestic and foreign markets will be considered at the session.
Derivatives traded on the Russian market based on other underlying assets, including standardized and other exchange derivatives, will also be discussed.
Moderator
Igor Marich, Member of the Management Board, Managing Director of Foreign Exchange & Money Market (FX&MM), Moscow Exchange

16:00–17:10

Collective Investments: Main Challenges and Ares of Growth Session 4.3: The Special Depository: Keeping in Step with the Times; What Does an Investor Pay for? The main areas of growth for specialized depositories, as well as the current technological infrastructure needs as dictated by the market, will be...
The main areas of growth for specialized depositories, as well as the current technological infrastructure needs as dictated by the market, will be discussed during the session.
Leading experts in the collective investment market will share their opinions on the new functions that specialized depositories may potentially provide, including: outsourcing the functions of client services, such as the back office; possible settlements of client transactions and liabilities by specialized depositories; additional services for insurance companies; and serving other types of clients. Another topic for discussion will be the possibility of applying foreign practices of having custodians and fund administrators.
Additional topics will cover the rules of mutual fund trust management and the so-called regulatory barriers. Are the specialized depositaries willing to have the rules of trust management registered, and do the investors need it? What is it that currently hinders the improvement of business efficiency and gaining client confidence?
Moderator
Catherine Golub, Project Coordinator, Forum Analytical Centre

16:00–17:10

Microfinance Session 5.3: The Development and Improvement of a Self-Regulation Institution on the Microfinance Market During the session, the main results of development of self-regulation in the microfinance market, since the basic requirements for self-regulation...
During the session, the main results of development of self-regulation in the microfinance market, since the basic requirements for self-regulation were established by legislation, will be reviewed. Prospects for further improvement, as well as the possibility for self-regulatory organizations (SROs) to play a bigger role in the process of control and oversight, will be covered.
A separate topic for discussion will be the issue of shaping the control environment. That includes providing the SROs with the necessary methods and instruments of control, and implementing measures to improve the quality of the control function of SROs.
The session will also include discussion of the benefits of regulation based on basic standards, as an effective mechanism that would have a flexible and prompt regulatory impact on the operations of microfinance institutions. Panellists will have the opportunity to find out about some of the results of applying the standards and their impact on the financial stability of microfinance market participants, as well as about the dynamics of misconduct and the prevention of unfair practices.
Moderator
Ilya Kochetkov, Director, Microfinance Market Department, Bank of Russia

16:00–17:10

Insurance Market Session 6.3: The Consumer in the Insurance Market Creating the right conditions for constructive interaction between insurers and consumers of insurance services, preventing misconduct in the marke...
Creating the right conditions for constructive interaction between insurers and consumers of insurance services, preventing misconduct in the market, applying innovative solutions aimed at increasing the accessibility of insurance products and improving customer service: all these issues have a direct influence on the sustainable development of the insurance industry and the quality of life of the public.
The discussion will centre on increasing client focus and the responsibility of the insurance business, standardizing the work of the industry, digitalizing insurance products, customizing services, and developing healthy competition on the insurance market.
Moderator
Petr Shkumatov, Coordinator, Blue Buckets Society

16:00–17:10

Cross-sector sessions Session 7.3: Approaches to the Regulation of Financial Groups
Moderator
Dmitry Tulin, First Deputy Governor, Bank of Russia

17:10–17:30

Coffee break

17:30–18:40

Parallel sessions Banks Session 1.4: RegTech and SupTech: Technological Transformation of Interaction Between the Financial Industry and the Regulator
Moderator
Vasily Pozdyshev, Deputy Governor, Bank of Russia

17:30–18:40

Macroeconomics and Monetary Policy Session 2.4: Inflation Expectations and Ways to Manage Them Most central banks in developed countries stick to the course of targeting inflation. A key feature of this approach is the ability to govern infla...
Most central banks in developed countries stick to the course of targeting inflation. A key feature of this approach is the ability to govern inflation’s future trajectory by managing the expectations of economic agents. Therefore, an important issue is anchoring inflation expectations: the degree of their reaction to short-term inflation shake-ups.
Inflation expectations data are most often obtained through sociological surveys or by using indirect estimates from statistics. As a result, the data can vary among different groups of economic agents and affect inflation in various ways.
What approaches are there to measuring inflation expectations, assessing their impact on inflation and determining the degree of anchoring? How should inflation expectations be taken into account when decisions on monetary policy issues are made?

17:30–18:40

Finance Market Professionals Session 3.4: Identifying Optimal Levels of Regulation and Efficient Oversight in the Securities Market: Theory and Practice Issues that are the most relevant to professional market players are going to be discussed in this session, covering management of regulatory burde...
Issues that are the most relevant to professional market players are going to be discussed in this session, covering management of regulatory burdens and efficient interaction between the regulator and market participants during oversight activities.
In 2018, the Bank of Russia issued the ‘Concept of proportional regulation and risk-oriented oversight for non-credit financial organizations’ (NFOs), and worked with self-regulatory organizations and market participants in order to draw a roadmap to introduce the concept for securities market players. As part of the implementation of this Concept, the principles and approach to oversight by the Bank of Russia are changing.
The basis for proportional oversight is the risk level in supervised organizations, as well as the nature and extent of consequences for such organizations in case they fail to meet the requirements for consumers, the industry and the market as a whole. Accordingly, when performing regulatory interaction with other market participants, the Bank of Russia currently places the emphasis on introducing a risk-based approach and ensuring a transition to proportional supervision by establishing uniform ways to determine the oversight methods, depending on the size and significance and the risk profile of supervised organizations. At the same time, there is a significant burden that the supervisory procedures lay on financial institutions, market participants say.
During the discussion between the professional community and the regulator, further steps to implement the optimal regulation and the risk-based supervision of NFOs will be considered.

17:30–18:40

Collective Investments: Main Challenges and Ares of Growth Session 4.4: Private Pension Funds: Competition and Factors Hindering Business Development Various manifestations of competition in the private pension funds market will be considered during this session.Primarily, the discussion will cov...
Various manifestations of competition in the private pension funds market will be considered during this session.
Primarily, the discussion will cover competition between PPFs (different in size; with or without government participation) and the consequences of unfair competition, in particular, as a result of the fund agents’ activity. In this sense, prospects for small private pension funds will be assessed.
In addition, the session speakers will review how PPFs compete for investors’ money with other financial market participants, such as insurers, banks, and professional market players. Special attention will be paid to enhancing confidence in PPFs, for example through the system of pension guarantees (compulsory pension insurance and, at a later stage, non-state pension schemes) and the mechanism of financial recovery for PPFs.
Another topic that will be covered is the competitive advantage of asset management companies over private pension funds, as the former remove the limitations on managing pension investment portfolios.
Moderator
Yury Voronin, Chief Financial Commissioner for Consumer Rights, Financial Ombudsman Administration

17:30–18:40

Microfinance Session 5.4: Online Services in the Microfinance Market: Challenges and Growth Prospects The microfinance market has become one of the industries where the latest technologies are being actively introduced. Loans are issued online, biom...
The microfinance market has become one of the industries where the latest technologies are being actively introduced. Loans are issued online, biometrics and artificial intelligence are used almost as often as in the banking sector, and microfinance companies are becoming advanced platforms where FinTech solutions are implemented.
Panellists will discuss the challenges facing the online segment and emerging as remote sales channels expand, and present their methods of effectively confronting such challenges.
The audience will learn about the technical innovations currently available that can be used, among other things, to minimize companies’ risks, reduce costs, enhance interaction with consumers and improve the quality of services.
Representatives of the business community will share their knowledge on remote scoring. A representative of the Bank of Russia will report on the development of biometrics.
Moderator
Oleg Grishin, CEO, LLC «MigCredit»

17:30–18:40

Insurance Market Session 6.4: New Approaches to Assessing the Financial Stability of Insurance Companies The development of both the financial and insurance markets has led to increased complexity of operations on the insurer’s balance sheet. In order ...
The development of both the financial and insurance markets has led to increased complexity of operations on the insurer’s balance sheet. In order to assess the financial stability of insurance companies, it is vital to systematically evaluate all the insurers’ assets and liabilities, as well as potential shake-ups in the economy as a whole and in particular companies.

Topics for discussion include:
The main sources of risk to financial stability: the ratio of insurance, financial and operational risks.
The role of corporate governance in improving financial sustainability.
Rigidity of and factors in shake-up scenarios.
The impact of high concentration of credit risk on the assessment of financial stability.
Features of insurers’ individual business models: reinsurance, life insurance, compulsory medical insurance.
Moderator
Maria Bogomolova, Partner, Assurance and Consulting Services Leader to the Insurance Sector in Russia, PricewaterhouseCoopers Audit

17:30–18:40

Cross-sector sessions Session 7.4: The Сontribution of Сorporate Governance to the Competitiveness of a Financial Institution Why do some banks have an effective strategy, while others have to go undergo reorganization? What is the difference between insurance companies th...
Why do some banks have an effective strategy, while others have to go undergo reorganization? What is the difference between insurance companies that successfully attract strategic partners and build long-term business relations, and those that need to be bailed out or have their license withdrawn? While the reason in each case will vary, it often boils down to the corporate governance employed by the company, and in particular its financial governance.
How do the owner, directors and management work together to utilise corporate governance principles to promote the growth and competitiveness of a financial organization? Does any of this depend on independent directors? Is there a way to effectively manage the owner’s conflicts of interest?
Moderator
Oleg Vyugin, Chairman of the Board of Directors, Independent Director, SAFMAR Financial Investments

19:00–22:00

Presidential Library,
Plenary session hall (second floor)
Bank of Russia Reception
5 July

09:30–11:00

Presidential Library,
Plenary session hall (second floor)
Plenary session II Plenary sessions Self-Regulation, Ethics and Behavioral Oversight: Challenges for the Next Three Years Self-regulation on the financial market is an effective means of determining requirements for professional standards, implementing ethical codes of...
Self-regulation on the financial market is an effective means of determining requirements for professional standards, implementing ethical codes of conduct, and applying best business integrity practices. This session will focus on approaches to implementing professional and ethical standards which take into account the specific aspects of working in the financial market. Participants will also discuss the role of the regulator in drafting and monitoring standards, as well as the feasibility of self-regulation in the banking sector. What innovations should we expect to see in self-regulation over the coming three years, during which time the Bank of Russia will be implementing its new financial market development strategy?

The lack of a systemic approach to establishing a corporate culture in the financial market is one of the reasons why trust in financial institutions has fallen. The Bank of Russia has drafted a Code of Integrity to serve as the foundation for applying ethical standards in the financial industry. What are the benefits and costs of implementing the code in the eyes of the financial industry? How can the corporate culture of the financial sector be transformed? Is the market prepared for principle-based regulation? Are the Bank of Russia’s efforts to focus on improving integrity among financial market players and employees sufficient?

This session will feature a dialogue between the regulator and the market on developing and improving the effectiveness of behavioural oversight. How can behavioural oversight be made to be a strategic development tool for financial market participants aimed at implementing the best behavioural models? Could systemic violations of consumer rights or malpractice lead to harsh consequences, even if the company is in good financial health? International experience will also come under examination, particularly non-standard approaches to behavioural oversight, including measures to counter the misselling of financial products.
Moderator
Sergey Shvetsov, First Deputy Governor, Bank of Russia

11:00–11:30

Presidential Library,
Plenary session hall (second floor)
Keynote speaker

11:30–11:50

Coffee break

11:50–13:00

Parallel sessions Banks Session 1.5: IFRS 9: Specificities and Results of Implementation New accounting requirements for credit institutions came into effect in 2019, based on the principles of IFRS 9 Financial Instruments. At the same ...
New accounting requirements for credit institutions came into effect in 2019, based on the principles of IFRS 9 Financial Instruments. At the same time, the algorithms for using new accounting data to calculate prudential indicators have been clarified. Proposed topics for discussion during this session include the results of the transition to IFRS 9 in accounting, the specifics of implementation of the new requirements, and current issues regarding IFRS 9.
Moderator
Andrey Kruzhalov, Deputy Governor, Bank of Russia

11:50–13:00

Macroeconomics and Monetary Policy Session 2.5: Accelerating Economic Growth in Russia Few countries that have reached average and high levels of development manage to accelerate economic growth on a sustainable basis. Russia has set ...
Few countries that have reached average and high levels of development manage to accelerate economic growth on a sustainable basis. Russia has set such a goal. Panellists will discuss factors and conditions for accelerating growth in Russia, from demographic trends, investment and productivity, to global value chains, investment climate issues and growth incentives for companies and individual employees.
Moderator
Alexander Morozov, Director, Research and Forecasting Department, Bank of Russia

11:50–13:00

Finance Market Professionals Session 3.5: Investment Consulting: Initial Results Legislative changes that came into effect in December 2018 shaped regulation for the financial market’s new sector: investment consulting. The prop...
Legislative changes that came into effect in December 2018 shaped regulation for the financial market’s new sector: investment consulting. The proposed topics for discussion during this session are the first results of the new legislation, along with the necessary adjustments to the regulatory framework due to established business practices, including a draft of the basic standard for investment consulting, which is designed to provide a detailed description of this kind of service. Another relevant issue, the launch of new products by market participants on the basis of the new legislation, will also be covered, as well as changes to their business models due to legislative innovations. It is important to discuss the aspect of taxation of investment advisers, including self-employed entrepreneurs, both those engaged and not engaged in other types of professional activity. The procedure and practice of accreditation of the automatized consulting programmes should also be considered.
Moderator
Alexey Timofeev, President, Russian National Association of Securities Market Participants (NAUFOR)

11:50–13:00

Collective Investments: Main Challenges and Ares of Growth Session 4.5: The Growth of Non-State Pensions The session will cover the main areas for development of the network of non-state pension providers.In particular, the proposal to introduce a syst...
The session will cover the main areas for development of the network of non-state pension providers.
In particular, the proposal to introduce a system of guaranteeing pension reserves for non-state pension providers will be discussed.
Leading market experts will also share their views on ways to expand the investment opportunities of private pension funds, and in particular on introducing the new requirements to investing pension reserves.
Special attention will be paid to the need to increase the transparency of private pension funds’ operations and the introduction of new information disclosure requirements.
Moderator
Konstantin Ugryumov, President, National Association of Non-Governmental Pension Funds

11:50–13:00

Microfinance Session 5.5: Partnership between Credit and Microfinance Organizations: Benefits and Threats to Business and Consumers The session covers the discussion of the partnership between credit and microfinance organizations, and, above all, the development of microfinance...
The session covers the discussion of the partnership between credit and microfinance organizations, and, above all, the development of microfinance companies that are part of banking groups. Such microfinance institutions have access to cheaper funding, use advanced technologies, and apply high standards of customer service.
Participants in the discussion will assess the impact that the development of such companies has on the microfinance market as a whole. Speakers will present their points of view on competitive advantages and possible threats that the inclusion of microfinance organizations in banking groups may bring to businesses and consumers.
Another important topic will be the discussion of consumer interests: whether they ultimately benefit from partnerships between credit and microfinance institutions, and how such partnerships affect the accessibility and cost of financial products.
Moderator
Alexey Simanovskiy, Adviser to the Governor, Bank of Russia

11:50–13:00

Insurance Market Session 6.5: Life Insurance: Prospects Realizing the potential of the life insurance market, strengthening the role of the social function of life insurance, improving the quality of sal...
Realizing the potential of the life insurance market, strengthening the role of the social function of life insurance, improving the quality of sales and customer satisfaction: these are the essential tasks that can be fulfilled with the active involvement of all parties.
The discussion will focus on the potential for the development of this segment, the prospects for maintaining growth rates, evaluating the positions of personal life insurance and sales through banks, the trends in the development of universal life insurance, the importance of introducing unit-linked life insurance, the standards of operations in this segment, and the impact of digital technologies.
Moderator
Maksim Chernin, Chairman, Committee on Insurance against Accidents and Development of Life Insurance, All-Russian Insurance Association

11:50–13:00

Cross-sector sessions Session 7.5: Cyber Risks and Cyber Threats: Managing, Regulating, Insuring The rapid development of new digital tools and technologies and their extensive use on the financial markets has effectively created new contours a...
The rapid development of new digital tools and technologies and their extensive use on the financial markets has effectively created new contours and features in the digital environment, and given its participants new challenges, primarily related to heightened risks. These are primarily operational risks, the risks of information threats being realized (cyber risk), and the risks associated with the growing interdependence between market participants through the use of disruptive technologies. It is clear that all national regulators are, in one way or another, facing the need for specialized regulation in the field of information security risk management. One of the most pressing issues is evaluating the risk landscape and transforming risk management systems in terms of the tasks that are most relevant in the new conditions of the digital economy.
Moderator
Ilya Sachkov, CEO and founder, Group-IB

13:00–14:30

Lunch

14:30–15:40

Parallel sessions Banks Session 1.6: Macroprudential Policy: Aims, Means, Results Macroprudential policies became widespread globally after the 2008 financial crisis. Orientation towards systemic risk instead of individual market...
Macroprudential policies became widespread globally after the 2008 financial crisis. Orientation towards systemic risk instead of individual market participants’ risks required that new tools be developed. However, the assessment of their effectiveness in terms of increasing financial stability is still causing heated debates among regulators. The Bank of Russia actively uses macroprudential policy instruments to reduce systemic risks in the financial system, but how do these measures affect the banks, their business models and strategies? This will be discussed during the session, along with the latest global trends in the application and evaluation of the efficiency of macroprudential tools.
Moderator
Elizaveta Danilova, Director, Financial Stability Department, Bank of Russia

14:30–15:40

Macroeconomics and Monetary Policy Session 2.6: The Effect of Regional Economic Heterogeneity on Monetary Policy Decision Making In the modern world, with its open borders and increasing mobility of resources, economic analysis for the purposes of policy is becoming increasin...
In the modern world, with its open borders and increasing mobility of resources, economic analysis for the purposes of policy is becoming increasingly globalized. Bottom-up analysis may unravel many economic mysteries and capture emerging trends that can later spread to the entire system. The results of regional analysis are used in decision-making by the Bank of Russia and many other central banks, both in large economies and relatively small ones. What questions may be answered through regional analysis? Defining and achieving the goals of monetary policy: is it sufficient to monitor the average inflation rate in the country, or should we also take into account variation by region, marginal indicators and price divergence risks? What is the basis for the heterogeneity of inflationary dynamics? This kind of information helps to build a solid foundation for making decisions on monetary and macroprudential policies, as well as government policies in general.
Moderator
Antonio Spilimbergo, Assistant Director, Western Hemisphere Department, International Monetary Fund

14:30–15:40

Collective Investments: Main Challenges and Ares of Growth Session 4.6: Risk-Management Tools in Collective Investments: The Abilities of Managers and Expectations of Investors Client preferences in the closed-end fund segment of the collective investment market, and how those preferences have changed since 2014, will be r...
Client preferences in the closed-end fund segment of the collective investment market, and how those preferences have changed since 2014, will be reviewed during the session.
Leading market experts will share their opinions on investors’ readiness for risky strategies in closed mutual funds.
Separately from that, the session will cover the additional options provided by the law on investment funds, allowing funds to act as universal platforms for project financing.
Special attention will be paid to closed-end investment funds as tools for retail investors, as well as their capabilities within development projects.
Moderator
Vadim Khrapun, Partner, PwC Consulting

14:30–15:40

Microfinance Session 5.6: Consumer Fraud and Borrower Misconduct: Taking Effective Countermeasures Session participants will address the issues of protection from fraud on the part of clients that microfinance institutions face in their operation...
Session participants will address the issues of protection from fraud on the part of clients that microfinance institutions face in their operations. Mechanisms to counter unfair practices, as well as ways to minimize the damage to companies from misconduct on the part of consumers, will be considered.
Participants in the dialogue will talk about new fraud schemes related to the development of remote sales channels, and share their experience in using modern technologies that enable them to manage those risks.
During the session, various aspects of the growth of anti-fraud activities, the identification of triggers in client behaviour, and new tools for identifying and assessing borrowers will be discussed.
Moderator
Victor Klimov, Financial Ombudsman in Insurance

14:30–15:40

Cross-sector sessions Session 7.6: Compliance as a Part of Corporate Culture Large financial companies that use a risk-oriented approach to management, combined with being actively customer-oriented, make compliance an impor...
Large financial companies that use a risk-oriented approach to management, combined with being actively customer-oriented, make compliance an important part of their corporate culture.
Abiding by the law and managing the business with a high level of ethics and integrity should be beneficial to all participants in the financial market.
Ultimately, this approach contributes to ensuring the integrity and attractiveness of the national financial market, enhancing consumer protection and maintaining public confidence in financial institutions.
The session will cover the main trends in compliance development in Russia; the role of compliance in building corporate culture; regulatory arbitration in compliance: regulation in the Russian Federation as well as international standards and regulatory norms; and the specific features of employee motivation to observe a culture of compliance.
Moderator
Valery Lyakh, Director, Department for Countering Malpractice, Bank of Russia

15:40–16:00

Coffee break

16:00–17:10

Parallel sessions Banks Session 1.7: The Development of the Deposit Insurance System The objectives, the main vectors and stages of the further growth of the deposit insurance system in the banks of the Russian Federation in the con...
The objectives, the main vectors and stages of the further growth of the deposit insurance system in the banks of the Russian Federation in the context of the completion of large-scale tasks aimed at improving the Russian banking sector. The rise in members of the deposit insurance scheme. The insurance liability of the state corporation, the Deposit Insurance Agency (DIA). Ensuring the self-sufficiency of the compulsory deposit insurance fund and a commensurate burden on banks: approaches to the formation of the calculation base, and a differentiated system of insurance premiums, depending on the financial stability of banks. International trends in the development of deposit insurance systems (the EU, BRICS). The potential of the emerging common financial market of the EAEU: ways of bringing together (harmonizing) the deposit insurance systems of EAEU countries in order to provide depositors with full insurance coverage without borders.
Moderator
Vasily Pozdyshev, Deputy Governor, Bank of Russia

16:00–17:10

Finance Market Professionals Session 3.7: Fair Pricing on the Securities Market Fair pricing of securities is an integral element of sustainable growth in a financial market that is appropriate to the economy’s requirements.Tak...
Fair pricing of securities is an integral element of sustainable growth in a financial market that is appropriate to the economy’s requirements.
Taking into account the existing ill-founded practice of estimating the fair value of equities based on their stock prices, the notion of fair equity value in organized trading needs to be verified and validated by both the regulator and the market participants.
What determines the confidence of the Bank of Russia and of market participants in the price that is established in exchange trades? Who is the ‘price source’: professional analysts and traders or retail investors and speculators?
What is the role of domestic investors as a source of fair value? Why are the fundamental value, exchange price and fair value not the same thing? How is fair value affected by factors such as access to insider information and external political and non-market impact? Is it possible to define the criteria for the activity and liquidity of the markets and to determine the quantitative values of the criteria?

16:00–17:10

Cross-sector sessions Session 7.7: Anti-Money Laundering Legislation and Modern Financial Technology: Is a Compromise Possible?